Iberiabank in Lafayette, La., neutralized the energy issues common to Gulf region lenders these days with a one-two punch of stronger fee income and robust, more profitable lending.
The $20.1 billion-asset company said second-quarter net income rose 65% from a year earlier to $50.8 million, or $1.18 per share, topping the $1.15 average estimate of analysts.
Net interest income jumped 11.7% to $162.7 million as total loans and leases grew 5.5% to $14.7 billion, including an uptick in residential mortgage loans. The net interest margin increased 9 basis points to 3.61%.
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Iberiabank in Lafayette, La., reported higher third-quarter earnings on loan growth and because of an acquisition.
October 22 -
Iberiabank in Lafayette, La., plans to close eight branches in Louisiana, Alabama and Florida.
September 16 -
Iberiabank in Lafayette, La., has added a retired investment banker to its board. The $20 billion-asset company said in a press release Tuesday that Rick Maples, who once was head of investment banking at Stifel Financial, had become a director.
June 29 -
The bank plans to use the proceeds for general corporate purposes, including possible acquisitions such as potential FDIC-assisted transactions. Iberiabank may also use the proceeds for working capital and for investments in subsidiaries to support continued growth.
July 30
Noninterest income rose 5.5% to $64.9 million because of gains in service charges on deposits, income from life insurance and other items. "We experienced strong loan growth and seasonably strong fee income expansion," the bank said in a press release Wednesday.
The noninterest expense fell 8.9% to $139.5 million, but the provision for loan-loss increased 35% to $11.8 million.
Energy loans remained a big part of its credit issues.
Net chargeoffs more than tripled to $11.9 million. Energy loans made up about 65% of those net chargeoffs and were covered by existing reserves. At the end of the second quarter energy-related reserves were 5.3% of outstanding energy loans, the company said in a release Wednesday.
However, the company also said that it reduced its energy-related exposure by $70 million, or 10%, from March 31 to June 30 through reduced commitments, higher levels of paydowns and the chargeoffs.
Meanwhile, Iberia said it bolstered its capital position in May with a second preferred stock offering that yielded $57.5 million in gross proceeds.